Shares of Apple were up by more than 6% settling at $150.05 during Tuesday’s market close after the company delivered a better than expected earnings results that beat most analyst estimates.
According to the iPhone market, the company earned around $1.67 per share on a revenue of $45.4 billion compared to most analyst estimates of $1.57 earnings per share on a revenue of $44.89 billion.
The company delivered earnings of $1.42 per share during the same period last year. The company posted a rise of 7% in their revenue year over year marking their growth for the third quarter in a row.
Apple’s revenue from its services business which hit a record high of $7.3 billion up by 22% from the previous quarter last year. Apple then forecasted that it would be able to sustain a growth globally after its services sector gained double-digit growth during the past year.
While most investors and analysts expected a decline in its iPhone sales due to the upcoming release of the tenth anniversary iPhone next month which will be anticipated by most Apple fans, the company surpassed estimates after it posted a total of 41 million iPhones which was sold during the quarter recording a total of 1.2 billion units sold all over the world.
This beats most analyst estimates of 40.7 million iPhones sold during the quarter.The company was able to sell 51.18 million units of iPhone during the previous period missing most analyst estimates of 52.27 million iPhone units. During the earnings call, the company commented that the iPhone sales for the quarter were impressive and that the demand remains strong especially with the iPhone 7 and 7 Plus.
The company also posted growth in the revenue from all of its products during the quarter sending its earnings per share up by 17%.
Apple also posted an earnings guidance for its fourth fiscal quarter. The company expects a revenue of $49 billion to around $52 billion. Their gross margin is also expected to come at around 37.5% to 38% while its operating expenses are forecasted to range between $6.7 billion to $6.8 billion.
The release of the next iPhone next month which could be sold starting at the price of $1,000 is expected to drive higher revenues for the company during the next quarter. Aside from the tenth anniversary iPhone, the company is also reportedly working on another iPhone which will be released next year. The iPhone currently drives in a majority of the company’s revenue.